In the Lewis model, if the urban labor demand is given byW = 25 - 2Lwhere W = urban wage rate, L = labor hired in the urban%3Dmanufacturing sector,If the rural subsistence wage is 5, then the capitalists' income in theurban manufacturing sector is:O 200O 100O 50O None of the above.

The Lewis model envisages that surplus labour can be transferred from the rural area to urban areas.…

the Lewis model, = 25 - 2L nere W = urban wage rate, L labor hired in the urban %3D anufacturing sector, the rural subsistence wage is 5, then the capitalists' income in the ban manufacturing sector is:

the Lewis model, = 25 - 2L nere W = urban wage rate, L labor hired in the urban %3D anufacturing sector, the rural subsistence wage is 5, then the capitalists' income in the ban manufacturing sector is:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.6P

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